Microsoft To Build New Data Center in San Antonio

Microsoft Corp. will build a $550 million data center in San Antonio to house its growing online services. The 400,000-square-foot facility will be the software giant's first major data center in Texas.

The data center will house tens of thousands of computers to host Internet services like Microsoft's Windows Live offerings, which include everything from instant messaging to e-mail, said Mike Manos, Microsoft senior director of data centers.

To entice Microsoft, which will eventually employ about 75 people at the site, the city approved a tax abatement package that will run over the next 10 years. Mayor Phil Hardberger said the incentive will help turn vacant land within the city into a revenue-producer, bringing more tax dollars to the city and the schools. The data center will also use electricity from the municipal power company, generating roughly $1.4 million extra annually for San Antonio.

Once Microsoft closes on the 40-acre property, construction will take 1 1/2 to two years, Manos said.

Hardberger said Microsoft's arrival marked another step in the city's effort to attract more high-paying jobs. San Antonio, which has historically been dominated by the military and related jobs, has been working to attract more large companies. Toyota Motor Corp. opened a new manufacturing plant here last year.